Multi-State Cooperative Organic Society and MSCS Act 2002
Source : PIB
GS III : Food and Agriculture

What is discussed under Multi-State Cooperative Organic Society and MSCS Act 2002?

1. What is it?
2. Need and Benefits
3. About Multi State Cooperative Societies (MSCS) Act, 2002

Why in News ?

Union Cabinet approved setting up and promoting a national level cooperative society for organic products under the Multi State Cooperative Societies (MSCS) Act, 2002.

What is Multi-State Cooperative Organic Society?

Need and Benefits

• There are about 8.50 lakh cooperatives, which have around 29 crore members mainly from rural areas, who will benefit from the move.
• By serving as an umbrella organisation for conducting and marketing exports, it will give a boost to cooperative sector exports.
• This would enable Indian cooperatives to export their products to international markets.
• This society will also help cooperatives and ultimately their farmer members in getting benefits of high price of organic products.

Working of the Society

• National level cooperative society to be registered under Second Schedule of MSCS Act, 2002
• The cooperative society will manage various activities related to organic sector by providing certified and authentic organic products.
• It will help in unlocking demand and consumption potential of organic products in domestic as well as in global markets.
• This society will also help cooperatives and ultimately their farmer members in getting benefits of high price of organic products.
• It will empanel accredited organic testing labs and certification bodies.
• It will make use of the export marketing services provided by the national cooperative export organisation established under the MSCS Act of 2002, expanding the market reach and demand for organic products.
• It will also facilitate in providing technical guidance, training and capacity building of organic producer.

Constitutional Provisions:
The Constitution (97th Amendment) Act, 2011 added a new Part IXB regarding the cooperatives working in India.

Multi State Cooperative Societies (MSCS) Act, 2002

• An Act to consolidate and amend the law relating to co-operative societies confined to serving the interests of members in more than one State.
• The bill having been passed by both the Houses of Parliament received the assent of the President on 3rd July 2002 and it came on the Statute Book as The Multi State Cooperative Societies ACT 2002 (39 of 2002).
• Election of board members:
  • The central government will establish the Co-operative Election Authority to
    • Conduct such elections
    • Supervise, direct and control the preparation of electoral rolls
    • Perform other prescribed functions.
  • The Authority will consist of a chairperson, vice-chairperson, and up to three members appointed by the central government on the recommendations of a selection committee.
• Central government will appoint one or more Co-operative Ombudsman with territorial jurisdiction.
  • The Ombudsman shall inquire into complaints made by members of co-operative societies regarding
    • Their deposits
    • Equitable benefits of the society’s functioning
    • Issues affecting the individual rights of the members
• Under the Act, the board of a multi-state co-operative society will have a maximum of 21 directors.
• Under the Act, certain offences by a multi-state co-operative society or its officer or member include making false returns, furnishing false information, or disobeying any summons are offences.

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